Barclays Bank is expecting complaints about loan insurance to continue rising after a 93% increase in the first half of the year. The High Street bank said complaints about payment protection insurance (PPI) had soared after banks lost their legal challenge on PPI rules. It received over 73,000 insurance complaints, mostly about PPI, up from 38,000 in the same period of 2010. Overall, Barclays saw a 14% drop in complaints about its services.

Challenge
PPI is supposed to cover borrowers' loan repayments if they fall ill, die, or lose their jobs. But it became highly controversial and there were years of campaigning by consumer groups against the widespread mis-selling of the policies.

This prompted new rules which laid down how the banks should deal with past cases of potential mis-selling of PPI, which will lead to an extra compensation bill running into billions of pounds. A number of banks lost a High Court challenge against these rules in April. Barclays subsequently set £1bn aside earlier this year to meet PPI compensation costs and promised to.....Read more on this story---> Click HERE